 QuickBooks Online 2024. Check and expense form. Get ready, because we don't just do data input. We get totally into it. With intuits. QuickBooks Online. First, a word from our sponsor. Yeah, actually, we're sponsoring ourselves on this one, because apparently the merchandisers, they don't want to be seen with us. But that's okay whatever, because our merchandise is better than their stupid stuff anyways. Like our Accounting Rocks product line. If you're not crunching cords using Excel, you're doing it wrong. A must-have product, because the fact as everyone knows of accounting being one of the highest forms of artistic expression means accountants have a requirement, the obligation, a duty to share the tools necessary to properly channel the creative muse. And the muse, she rarely speaks more clearly than through the beautiful symmetry of spreadsheets. So get the shirt, because the creative muse, she could use a new pair of shoes. If you would like a commercial-free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com Here we are online in our browser, searching for QuickBooks Online. Test drive, looking for the result that has Intuit.com in the URL. Intuit being the owner of QuickBooks, selecting the United States version of the software and verifying that we're not a robot. Let's duplicate some tabs to put our financial statement reports in like we do every time. Right-click in the tab up top to duplicate it. Right-click in the tab up top again as it is thinking to duplicate it again as that tab is thinking. Back to the middle tab, going down to the reports on the left, opening up one of the favorites, the balance sheet. Tabbing to the right, let's close up the hamburger first and then tab to the right. And then go down to the reports again, this time opening up the profit and loss report, closing up the hamburger. And then going back to the first tab, that's the process we do every time. The first tab is where we're going to do the data input, and then we check what happens to the end result. The thing we're building, the financial statements, balance sheet income statement and related reports on the right. If I select the dropdown, you will recall that we've been looking at the vendor cycle, vendors being the people that we are paying when we're thinking about QuickBooks terms, meaning at the end of the vendor cycle, we would expect money to be going out for the purchase of goods and services. We note that we could be on an accrual or cash-based system. It depends on what kind of circumstances our business is in. The easiest system would be one where we're on a cash-based system and even easier than a cash-based system in that we make electronic transfers, possibly allowing us to skip the initial process of entering the transaction and instead be dependent on the bank to record the transaction and for us to then pick it up with the bank feeds. That would be the expense form would typically be used in that case. A cash-based system where we write checks is going to be a step in more complexity because then we have to track the outstanding checks and therefore can't wait till they clear the bank to record the checks generally. On an accrual-based system, we would enter a bill which increases the accounts payable as we saw in prior presentations and then we would pay the bill with a pay bill form which is in essence a check or expense form but one specific to decrease in the accounts payable. If we bought inventory, we would have the purchase order possibly involved. So now we're going to go back up to the cash-based system and look at these two forms. The expense form and the check form. The expense form and the check form will be very similar in nature. The layout will look pretty much the same except for the check form. We'll have a check number part of it so that we can enter the check number. Now in practice, these forms are usually going to be used for different reasons because if you're entering an expense form, you're probably utilizing the bank feeds, which many businesses, especially small businesses, this is where you can really often save times on the bank feeds. So even if you have to deal with like accounts receivable on the customer side so you have to invoice people and whatnot. Oftentimes on the paying side, on the vendor side, we're able to set up the bank feeds and pay through either expense forms or credit card type forms, both of which can be connected with the bank feeds and as we pull the information in from Bank Feed Limbo, we can record the transaction at that point in time. So by doing that, we're actually not doing the full service bookkeeping system because usually if I bought something with an electronic transfer, let's say we bought something from an online warehouse and we paid for it with an electronic transfer, I should record that when I make the payment and then when it clears the bank, I could use the bank feeds or simply a bank reconciliation to verify the bank side to my side so that we have the double check. That's what a reconciliation and the bank feeds were originally kind of designed to do. But because we're becoming so much more confident in the bank feeds and because there's not a long time between when we actually make the purchase and the transaction takes place, possibly a very, very little amount of time, we can verify the transaction pretty easily that it went through. We don't have that timing difference that we do with checks and therefore we often could skip that first bit of recording the transaction when we actually make it and instead wait till it clears the bank and then record the transaction once it clears the bank. If we have a check form, we cannot do that generally because when we have a check form, we have to actually track the outstanding check because there's going to be a substantial time difference between when we write the check and when the check clears. So those are going to be the two major forms. Also note that if we're entering a lot of expense forms, possibly if we're entering a lot of detail like from a bank statement or something like that, if we're manually inputting it, we might go to say a check register to enter it a little bit faster instead of going to the expense forms here and sometimes other kind of inputs will be used such as the bank feeds which is kind of a truncated or smaller expense form. So whenever we use like a register or when we use the bank feeds, it doesn't look the same as an expense form but it'll still create an expense form when we drill down on it on the financial statements. All right, let's look at one for crying out loud. Could you get to one here? All right, let's make up another vendor. This is going to be vendor. I'm just going to make up a vendor. We're paying for something, vendor 11. I'm going to add the vendor. It's going to be coming out of the checking account. Now we could make an expense form coming out of the checking account, the savings account, credit card account because basically if it was coming out of the credit card account, it's a little bit difficult to wrap your mind around at first, you know, when you're looking at an expense form comes out. But when it's a credit card, all that means is that instead of your asset going down, you have a liability going up, right? So an expense form means that the checking account is going to go down and or it can mean that the liability account is going to go up and the other side is going to go to some kind of expense typically. All right, so then we have the let's make this happen in 2024. So I'm going to I'm going to bring it up to 1624 and then the payment method. We have American Express cash check and we could add different kinds of payment methods. Notice this is an internal form. This isn't necessarily required for the data input. If you didn't put anything in here, that would be you'd still be okay. So I might put in here I might add one like electronic transfer. So if I added that, it's a boom, there's that. And if you had a reference number, we have the reference number. If we were doing tags, we have the tags here. We might talk about that tags later. And then the category, let's just make up in a category. I'm going to call it expense expense one. It's going to make up a category which is an account. So I'm going to add an account. Usually the other side's going to go to some kind of expense because usually when money is going out of the business, it's because we're purchasing some kind of expense. I'm just going to make it other expense for now to be very generic expense number one. And so there it is and the amount let's say is 110. So we have similar billable items, tax and customers as we saw with the bill form, noting that this is for usually like a job cost type of system where you're making a payment, you're buying something possibly supplies or something like that that you're going to use on a job and then you want to invoice a client for it. Well then you can click this off that it would be billable. And when you pick up the client on an invoice, it will then show that on the invoice. So we could add multiple categories down below. We can add more lines if we needed to add more lines of things that were the accounts that we're going to be putting in place. Now note that this is going to be used if we're applying it directly to an account as we're doing here. If we bought something like inventory and we were tracking the inventory on a in QuickBooks on a perpetual system, then like with the bill forms, we would use an item form down here and we'd have to create an item so that QuickBooks can have that added step of tracking the inventory item. We have the memo, we have attachments. So if you wanted to attach say a receipt or something like that, we have the attachment capacity. You can cancel, clear, you can make it reoccurring if this is going to be a repeat thing to save a little bit of time on the data input. Save, we could save and close or save and new. Let's go ahead and if I look at this in a journal entry format, it's a straightforward journal entry, right? This is going to be an expense form and what's going to happen is going to be the expense is going to happen down here for 110 and then cash is going to go down. This is debits and credits. Credits are negative just to see the journal entry straightforward here. So we've got the 110 decreases net income. That's just these three numbers are here and then cash is going to go down. Cash had nothing in it before so cash is now negative 110 and then the expenses on the other side creating a loss in this case because we haven't recorded any income here. So that would be the journal entry. Let's check it out. Let's go ahead and save it and close it and check it out. Going to the tab to the right and let's go to the next year up 010124 tab 123124 tab. Run it to refresh it and then we're going to go into that checking account by clicking on it and okay. And so what happened K pass. Oh, let me see. So I recheck the date 1124 to 123124 run the report and then I'm going to go back into the checking again. And we're going to see there it is. There's our expense form. So we're going to check if I check on that or click on that. It takes me to the expense form. There it is closing that out. The other side or let's go back to the report and look at the other side on the income statement changing the dates from 010124 tab 123124 tab running that one. There's our expense form on this side bringing the net income to negative for this time period. All right, let's go back to the first tab. And then note that if you were entering a lot of checks into the system for whatever reason, say you're trying to construct the financial statements for multiple months or something from bank statements or something like that, then you might not go into the expense form. It might be easier to go into the register type of format. So to do that, one way you can get there is you can go to the bank. I'm sorry, the transactions down here. Actually, you could go into that one too because that was the memorized area. But I'm going to go down here. This is where it is always at the transactions. And then you have the chart of accounts on the right hand side. So within the chart of accounts, we can go down here and you can see that all of the balance sheet accounts have this view register except for the main equity account. And then the income statement accounts do not. So the register allows you to kind of have a quicker data input for some of these form types. So let me show you if we go into the view register. Now we're looking at this from the standpoint of the checking account. And I point that out here because this one is pretty straightforward because a lot of people have seen the old checkbook registers where they're used to using like a register format. Oftentimes, but the same format could be used with other balance sheet accounts as well. And it could be useful if you only have like two accounts affected, then instead of entering like a journal entry, it sometimes is easier to see this way because you can just think of it as increases and decreases to the particular account that you are in. So in this case, we have payments and deposits. But if I was in another account like a fixed asset account, it might just say increase or decrease. What is it? Increase or decreasing the account that you're in. And that means the other side of the transaction is going to go to whatever other account that you're going to put it to. Okay. So if I go up top here, we've got the dropdown and I have a check form. I've got the deposit, the sales receipt, the receipt payment. Obviously, the checking account has all these different kind of forms because the checking account is the lifeblood of the company. It runs through all of the different areas. If I use an expense form, then let's put this in here as of 011524 and I'm not going to put any reference number. Let's say this is vendor, vendor 12 tab. I'm just going to add it as we go. And let's say this one was for 200. And the other side of the account, I'm going to say is going to expense, expense number two. I'm just going to add it just to have a different expense account. We're going to add the expense. We're going to call it other business expense, expense number two. So you can see that this is a much shorter data input screen than the whole expense form, but it's doing the same thing. It's going to be decreasing the checking account. And the other side is going to be going to where we told it to go, the expense form. If I drill back down on it after we record it, it's not going to go to this register. However, it's going to go to the full expense form. So let's check it out. If I save it and I could see it here. Now, if I click on that, if I click down here, I can see it'll pull it back up. And then if I want to edit it, then it takes me into the actual expense form, right? Now, if I close that back out, let's go to the balance sheet and check it out this way. And let's run it to refresh it. And then I'm going to go into the expense or the checking account. And let's go into the expense form. There it is. I had to refresh the screen again. But there it is. There's the 200 and you can drill back on it from here. When I drill back down on it, it's going to give me the expense form. It's not going to take me to the register. So what we want to be doing is we want to be starting to memorize what forms do what. What are the journal entries behind each of the forms that we do. And even if I enter something in a shortcut kind of data input method like the register or like the bank feeds, I want to imagine the forms that will be in place because when I drill back down from the end result, when I do the auditing back and I'm drilling back down, I'm going to get to the actual form, not the data input screen possibly that I put it in there with like the register. So here it is on the income statement as well. So if I go back to this first tab, let's add another one. I'm going to hit the plus button and let's do another expense form. And this time we're going to say this is going to be vendor 13 lucky number 13. And we're going to say this is coming out of the checking account. Let's make this on the 17th and no tags. And this time, note that we usually went to an expense account, but it doesn't always have to go to an expense account. Sometimes you might be purchasing say fixed asset, right? So I might be saying, okay, this is going to be fixed asset. This is a generic account. And just to show you the setup and the difference instead of an expense account, it would be a fixed asset account. And I'm just going to call it fixed asset, fixed asset furniture or something. And so save it. And then the amount is usually going to be larger. So when you have a large dollar amount, then again, you might have a fixed asset that's going to be going to an asset account, not a expense account. So if I was to look at the difference in the journal entry, what's going to happen here? Well, instead of this expense account, it's going to go into a fixed asset account. So instead of this being hit, it's going here. And we can see there's no impact on net income from this transaction. You've got cash going down, another asset going up. You will impact the financial statements when you depreciate it in the form of depreciation. Okay, so let's check that out. So if I save and close that and I go to my balance sheet and I run it to refresh it. And let's go into the checking account again. And it didn't do it again. I have to refresh it again. Sometimes the refresh, I have to double refresh it. Double take, double check. Okay, what happened? Okay, I refreshed it again. And so there we can see it for crying out loud. Actually, I don't like to cry out loud. For sobbing silently sake. For sobbing silently sake. Okay, so there it is here. If I go back and I can see on the fixed assets, now it went into the balance sheet account instead of the income account. Okay, let's go back on over. And this time, let's pretend we're doing inventory. So if I say another expense form, and we're going to say this is going to be vendor number 14. And we'll say it's coming out of the checking account. And we'll say 1720, let's say, on the date. And this time, I'm not going to do a category. I'm going to make an inventory item. So let's imagine we're purchasing inventory, not with a bill this time, but with an expense form. So I'm just going to make an item, item number one tab. And we're going to set up the inventory for it. And we'll talk more about items later, but I'll just know SKU category quantity on hand zero. We're purchasing the first quantity. I'll say as at the beginning point, I'm not going to put a reorder point inventory is what will be impacted when we purchase it as will be impacted here, because we are purchasing with the expense form. The sales account, we're going to say we sell it for, let's say, 230. It's going to go to the income account when we sell it. We're not selling it here, though. We're buying it. This is going to be subject to tax. We'll leave that as calculated. The purchase side is going to be item number one. Let's say we purchase it for $200. We purchased it for 200, which we're doing now, and we sell it for 230. Going to the cost of goods sold, the cost of goods sold is not impacted until we sell it. What's going to happen now is it's going to increase the inventory. So let's save it and close it. There we have it. Now, this time, if I look at the journal entry, what's going to happen instead of going to fixed assets, it's going to go to inventory. I changed the dollar amount to 210. And so instead of going to fixed assets, it's still going to an asset account of inventory. We're also going to need a sub ledger to track the inventory if we're tracking it within QuickBooks on a perpetual system. So let's save and close that one. And then go back to the balance sheet and you better do it right this time. Don't make me look stupid, QuickBooks. Don't make me look stupid. Make sure you record it this time. All right. So then we're going to go in there and there it is. So you just have to reason with it with QuickBooks. So there it is to 200. And if I go back, the other side is going into inventory. So there it is in inventory. And there it is on this side. Nothing happened to the income statement. When is the income statement impacted when we sell the inventory in the form of cost to good soul? That will be the expense. That will be expense. Let's tab to the right. Right click on that tab and duplicate it just to look at the sub ledger for inventory that we have created this time. Going to go down to the reports on the left-hand side. Let's go and just type in inventory valuation summary. So if we were tracking inventory, which we'll talk more about when we go through our practice problem, but then we can see the inventory is in place, the date needs to be increased to 123124, let's say, and then run it. So there's our item items on hand. Now we can see the total cost of inventory in our sub ledger broken out by the inventory items 79625 should match the balance sheet at 79625. Okay. So let's go back on over again and this time hit the dropdown and let's just imagine that we're going to use a credit card instead of an expense form. So let's say this is going to vendor number 15, tab, add a new one. This time instead of decreasing the checking account, we're going to increase the credit card account, the visa, let's say. So we're buying something with the visa, which also is something that you can do with the bank feeds and let's say the payment happens on the 23rd and let's go back to a category and let's just call it expense, expense, expense, number three, tab. I'm going to make a expense type of account and it's just going to be expense three and we'll just make it in other business. Okay. So now this is going to be the same thing except that instead of decreasing the checking account, we're going to increase the credit card account. So let's save it and close it. Go to the balance sheet, run it to refresh it. I'll double refresh it and so hopefully that works. Don't give me any trouble, man. Quick books and so I don't see it there. I don't see it there. Dang it. Oh, there it is. Did I not record a dollar amount in it? It would be helpful if you put a dollar amount in it. That would make it easier to see. Let's go into that expense form and put a dollar amount in it. Let's say it was for $300. Let's save it and close it and there it is. So there it is here and the other side would be going to the income statement over here and running it to refresh it. There it is. Let's go back on over again and let's just make one that's billable so that we can just see that process. Remember that the billable items to turn them on are in the settings. They're here, they're in the settings and then you can go into the expenses and then they've got the billable items turned on. So if I was in a job cost system, I might say, okay, I'm going to make an expense form and I'm going to say it was for vendor 16 tab. It's going to come out of the checking account and let's say it happened on the 26th and I purchased expense, let's just call it expense three again, but now I'm going to make it billable so I can make an invoice from it. Say it's taxable when I pull it over to the invoice. It's not going to apply a tax here. We're talking sales tax maybe for customer number one tab at it. So now if I save and close this, it'll record the same thing similar to what we've seen in the past, but now it's something that I can apply to the customer. So if I go down, for example, to the customer center and let's say I go down to the sales, I go into the customers and I find that customer one, I can see here if I scroll this to the left, I've got this billable charge. Scroll down a little bit and so we've got this billable charge so we can create an invoice from it directly here so I can open it up like this and it'll create the invoice and populate it with the item that we populated it with which once again I didn't put a dollar amount in which it was kind of annoying but there it is. You can also, if I was to create an invoice, do you want to leave without saving? Yes. If I was to create an invoice for customer number one, then it's going to have this item that I can pull in over here and I say yes, pull that in and we didn't charge him anything. Great. Okay, so we can close that out. That's the billable items which we'll talk more about in our practice problem. The way that you will often use expenses is with the bank feeds. So we'll talk about the bank feeds in the bank feed section but this is the most common form that would be used with the bank feeds. So you'd go to the transactions here and if I go to the bank transactions we can see then down below let's take like this rental income. I'm going to close up the hamburger. This rental, notice what we don't have here. We don't have the payee. We don't have the vendor in this case as this is received. That's weird. Let's go to the payment. This one which is paid. Now the person that we are paying might be in the memo but we often might have to still pull it in to the vendor from the memo. It would be in the memo possibly if it was an electronic transfer. So I'm going to say it's included there. Let's just say it's going to go to rent or lease, let's imagine and then we could memorize the transaction to make this more automated. So we'll talk more about this later but just I want to show here that this although it doesn't look exactly like the expense form because it's basically an electronic transfer like what we did in the check register it is basically an expense form and when we drill down from the financial statements on to this it will show basically an expense form. So this happened on let's say 12, 24, 23. So I'm going to say okay and let's go back into our balance sheet and let's bring this back to 2023, 2023, 2023, run it and then go into our checking account and then I'm going to scroll down here and we have, here it is if I click on it it doesn't take me back to the bank feed form but rather it once again takes me to the expense form. So when we use the bank feeds we want to be able to visualize the actual form that we're using even though we're doing a data input screen that doesn't look exactly like the actual form we're using because when we drill back down on the data it's going to take us to this type of form that we want to be able to envision. Alright let's go back again that's going to be the expense form. So if I go to the tab to the left and I open up the hamburger again now if I go to a check form it's going to look very similar to the expense form. We open up a check form looks very much the same. Let's run through it. Vendor 17 Vendor 17 and adding it coming out of the checking account similar type of options here and it's coming out of the checking accounts and then it's not going to come out we don't have the credit card options of course because the check will have check numbers and then we're going to say that this let's say it happens on the 28th here's the check number. Now with the checks note that if you're writing checks you could do this a few different ways. One is you can get the you can buy the actual checks that are printable checks and then when you write the checks you're going to have to put the checks in the printer so that it can print from QuickBooks. Note that the checks cannot be printed on just blank paper because you still need that internal control of having the check numbers on the physical paper checks tying out to the check numbers that are being printed by QuickBooks. So you could print it as you go or you can say print later and then as you have the checks that need to be printed you can print them all at one time. So I'll click that on for now and just to show that but that check number is going to be one of the issues. Notice here it's showing the check number that we're on that should match. Now note also that you might just be manually writing checks and then entering this into QuickBooks. You still want to enter it into QuickBooks as you write the checks manually because you want to make sure that you're entering the checks when you write them not being dependent on the bank because you need to track the outstanding checks because there's going to be a substantial amount of time between when you write the check and when it clears. So if you're manually writing the check you can still data input it as you write the check and then put the proper check numbers in as you write them. It might be easier to do that by going into the register similar process. So I'm going to go over here and say this is going to be let's just call it expense expense category 3 again and let's put a dollar amount this time. Let's make it $400. We're not going to make it billable so it's going to record the same thing. It's going to record an expense decrease to the checking account but now we have the check number. Let's say we're going to print it later too so I'm going to save it and close it. By printing the checks I can go to the plus button up top and I can go down to the print checks. Now if it gives you a screen that says to format the checks you can go ahead and say skip the formatting of the checks and you'll see a screen like this and now if we have multiple checks that needed to be printed we can basically print them at one time here and so we have the sort we can do our sorting options all checks show regular checks show bill payments and then when we print them I'm going to check them off and then we would want to put the proper starting check number which I think was 73 that we can continue on from that point and if we were putting the checks in the printer we'd have to make sure that we put them into the printer starting at the same check number and then we can preview and print and so there we have it so I'm going to say ok print and so now we're processing the checks so then we could print it from here which is a pdf now file so if I go back on over I'm going to say ok boom did your checks print ok yes they're all printed correctly now if they didn't print correctly you're going to have to redo it of course you are processing them through the printer so some checks need reprinting starting with if they needed reprinting you'd have to start them over so you get the proper check numbers no keep all checks in the print checks list if they didn't print properly you could say keep them here so I can try it again later possibly I'm going to say they printed properly so they should have been processed now I'm going to close this back out go into my balance sheet run the balance sheet again and then if I go into let's run it again just for double check go into the checking account and we're going to say that now we have a check notice the check form and the expense form very similar but now you have a check number with the check form which is great for tracking however with the expense forms if they're electronic transfers you have the bank memos which are great for tracking and with the expense forms the dates that we entered and the date that they clear the bank will be much closer whereas the check form the date that we entered it today is going to be a lot longer before it actually clears at some future point okay let's go back to the first tab to track this information if I go to my expenses tab on the left hand side we can see and hear that on the expenses side we could track the expenses if we want to look at our expenses this way and we can search by our expenses this way we can also track by the bills I mean the checks so if I want to search my by checks this way we could do that obviously if we go into the vendors that we have set up we can then look for the vendors that we set up here and we can see the activity of the payments in here I mean this information is not as important often times with the checks and the expenses as they are with the bills because when we enter the bills we have to track this information so that we can pay the bills but obviously if we're looking something up to see if it was paid we could go into this area we can also go into the checking account drill down on the checking account as we have done we can use our filtering fields if we wanted to do it this way so for example if this was going back to 2023 then I can say okay there's checks in all these different kind of forms that are in my transaction types if I just want to see checks then I can use my filtering options so I can say filter and we want to filter by type which is quite common so I could select the drop down here and so I want transaction type and then you can choose checks equal to equals and then the transaction type let's say checks hold on a sec what did I pick here, transaction type there we go I got it here equal to a check so then you can see that it's going to filter it now by the checks that's another way that you can look at it sometimes it's useful to look at the register as well so if you had questions you might want to look at it from a register perspective and you could do that by going into the chart of accounts opening the tab on the left transactions chart of accounts on the right and then go into the register for the checking account looking at the register and then you can see your activity this way as well within the register sometimes that's a nice way to look at it